Turkey has released an investor program worth a staggering USD 33 billion to lessen its current account deficit that in January totalled nearly $7.1 B. The program aims to do this by lowering imports and increasing exports.
19 companies across various industries including agriculture, electronics, health and automotive qualify for the program worth 135 billion in Turkish lira.
Public and private sectors have been working on the project for the last 18 months, and predictions are that the incentives will cut 12.3 billion from imports, therefore lessening the account deficit.
The government says the program will also create 134,000 jobs and help reduce Turkey’s high unemployment rate that in 2017 came in at 10.4%. This is still a better result than 2009 that registered 13.3% unemployment.
23 projects in total will benefit from the incentives that include customs duty, corporate tax and vat exemptions. Companies eligible for the incentives show either full or part foreign investment and are located all across Turkey in many provinces including Mardin, Bingol, Kayseri, Ankara, and Adana to name but a few.
Results from the incentive-based scheme are expected to start showing within two years and make Turkey stand out against other emerging markets such as India and Mexico.
The latter launched a similar scheme in 2017 and for the year-end, registered a 2% growth in the economy. Indonesia’s incentive package helped them to record 5.7 growth in the economy for the same year.
The package is just one of many moves Turkey is making to attract investors, both domestic and foreign. In March 2018, Turkish investments laws were changed with an aim to lessen red tape and regulate procedures into one database.
Meetings have also taken place in Italy, America, Qatari and other countries to attract foreign direct investment into Turkey.
All strategies are part of the comprehensive 2023 vision plan of Turkey to be a top ten performing economy in the world. 2023 is the coinciding date with the formation of the Turkish Republic, therefore playing a crucial part of the vision plan.
Targets within the plan break down into industry sectors such as tourism, health and transport. The latter has seen progress with many mega projects of Turkey taking shape including the New Istanbul Third Airport that will open in October 2018 and contribute significantly by becoming the globe’s major transport hub.